matt: that is jim farley talking about the transition to electric.poke yesterday with mark royce from gm about their plan to shift to electric, and fully, within the next 10 years. we our counting you down to the fed decision and a news conference with a jerome powell. do not miss our special coverage kicking off at 1:30 p.m. eastern. this is bloomberg. ♪ matt: this is "bloomberg markets." i'm matt miller. to bring you further headlines on the developing story, justice stephen breyer, according to people familiar with his thinking, is considering stepping down at the end of his term. that would give president biden a chance to replace him with another liberal justice. and president biden has pointed out that every justice has a right to decide what to do, which is clear, but i am sure he's fairly happy about this opportunity. he has not been able to fill a supreme court vacancy yet. and we are moments away from the fed's rate decision. jay powell will be telling us about how hawkish he plans to be to counter inflation. our correspondent from uber int

i sat down with ford ceo jim farley to talk about tesla, rivian and competition, but i started by askingshould expect the supply chain crunch to ease or get worse. jim: i wish i could tell you there was relief in sight, but fourth-quarter was very difficult. we started seeing a new supply problems with omicron and absenteeism in our supply base, where we started to get basic automotive arts shortages in the fourth quarter. that has eased a lot, but we still see the semi conductor impacting us now. we think it would last through this year, potentially into next year. the number of chips in our vehicles have gone from 2000 up with this kind of electric vehicle like lightning. we are using more and more of these. even if capacity increases, it is not fast enough for the advancement in the vehicles. it is something we have to deal with that we are making our most profitable vehicles in protecting production of them that is our first priority. emily: you said 40% of ford sales will be even by 2030. you have doubled production of lightning twice, tripled production in mexico, so i wonder if th

guy: jim farley, really interesting conversation.nt to hear more of it, coming up a little bit later on "bloomberg technology" is where you will find it. let's look ahead to what is happening with tesla, which reports a little bit later on. ed ludlow joining us from san francisco. let's talk a little bit about rivian first of all, and then migrate our way towards tesla. rivian-ford, that is an interesting combination. the f-150 lightning is going to be a huge product for ford. you've got rivian in terms of a potential competitor to that. how would rivian do if ford was no longer a partner, if they actually sell rivian as a competitor? ed: it is a really good question. ford made that initial investment at a time where there ev strategy was not as focused as it is present day. the marquis had not yet been revealed. they had not revealed the f-150 lightning. their investment commitment wasn't clear. this was them hedging their bets a little bit on an upstart that had not really started production. i reported, along with keith norton her

coming up we will hear from jim farley on what their partnership the flux.hey are launching a brand-new fleet of electric and it digitally connected commercial vehicles. this is bloomberg. >> for it is in the midst of the launching of its electric pickup truck. my colleague emily chang sat down with the ford ceo jim farley to talk about the new venture starting with what ford's new focus on services will meet for -- mean for consumers. >> it will be customized software you can pick and choose off the menu that will make sure for -- make sense for customers. maybe prognostic's telematics, dynamic routing, coaching for the driver if it is a gas or diesel van. i think we will have a subscription like we are so used to and content but it will be customized based on the usefulness of the data. >> i think that makes sense because when you look at all of the opportunities whether it is opportunities in sales, service, marketing, commerce itself, in building custom applications, analytics, dashboards, data, so anything you see here, it is not typically how we think

jim farley. >> i'm looking for a job. >> after this display executives from probably hoping for somethingof initiative. they've watched operation distraction. it kicks off in georgetown as we watched this together. it's usually a weekly outing possibly to the grocery or the mall go. visiting a shop buying some ice cream. this is the same boutique brand that she keeps in her freezer. that's an interesting parallel. he's the only one actually getting out. these reservations are down 59% from two years ago. other cities experiencing double-digit drops. >> don't you notice this so many of these iconic restaurants with all of this money to save them. it is terrible. >> don't worry about small businesses. none of this matters. we have operation distraction part two. >> he is considering adopting a cat. she is waiting in the wings. this cat has moved into the executive residence. he got out of the shower and trip on the dog. there is going to be drama because that's just what's going to happen. >> the story is getting totally blown out of proportion. they are just giving her a new costume for th

gm's ceo, mary barra, ford ceo jim farley, and others will talk about the future of president biden'sld back better" proposal. they're expected to push for tax credits for electric vehicles. under the original "build back better" agenda, consumers would have received $12,000 in credits for buying an electric vehicle. last week president biden said the spending package would likely have to be broken into chunks. >>> you can put down your number-two pencils. the s.a.t. exam is going digital. administrators said they are making the change as more colleges make standardized tests optional for admission. students will use their own laptops or tablets, but they'll still need to take the test at a supervised site. students have two hours to complete it instead of three. the new format begins in the u.s. in 2024. >>> and starbucks is brewing up energy drinks. the coffee giant is launching bya energy. comes in mango gava, raspberry lime, and pineapple passion fruit. each can has about 160 milligrams of caffeine, the same as two cups of coffee. they're currently available at grocery stores nati

ahead, just ahead of his meeting with president biden today, ford's chief executive, jim farley, he's the country's facing a shortage of 80,000 truck drivers. driving schools are popping up all over, and guess what they are seeing? if people changeing careers to get those high-paying jobs. we'll be back. ♪ -- with a little ride in a big old truck ♪♪ opportunities are all about timing. so if you're turning 65 or retiring soon, it's time to take advantage of a plan that gives you more for your medicare dollar: an aarp medicare advantage plan from unitedhealthcare. call unitedhealthcare today. for a low or $0 premium, get $0 copays on primary care doctor visits, preventive dental care, and hundreds of prescriptions. in fact, plan members saved an average of over $9,000 in 2020. you'll even get free yearly eye exams... and free designer frames. don't miss your shot. if you're turning 65 or retiring soon, learn about our wide choice of plans, including ppo options. call unitedhealthcare today. we'll walk you through your choices and find the right plan for you. catching a good opportunity.

you don't think jim farley is saying that? >> they may be carl, the transition is happening, and maybe moving faster, the chinese ev makers as well we'll get to them a bit later,'s up as well because of the strong deliveries there's a lot. evs being sold. >> norway, 65% of the market's evs. >> they had a snowstorm there, and all of them shut down, for heaven's sake. >>> still to come this morning, cramer's first mad dash of the year as we count down to the eng llopinbe don't go away. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. >>> for an average of 1.6% 23 of the last 26 first weeks of the month. opening bell just a couple minutes away (soft music) hey dad, i'm about to leave. don't forget your hat . good m

ford ceo and president jim farley in the meeting as well.dy. >> hey, jackie. we covered a lot of topics. of course the tax credit that is part of that build back better proposal. forward is ramping up production and so is it detroit rival general motors. investing $7 billion in electric battery and truck plants in michigan. forward wants to ramp up production from 600,000 electric vehicles per year by 2023. of course, part of that plan is a $12,500 ev tax credit for people that purchase new electric vehicles. i asked ford ceo if you would consider standalone legislation that was an ev tax credit separate from the build back at her plan. we also talked about how ford can stand out amongst all of the different makers from the industry leader like tesla to smaller setups like caribbean and lucid motors. listen. >> what makes us different is we are electrified our most electronic vehicles. we know our customers really well and we are scaling now. half of the electric vehicles are sold in china. we have to catch up. whatever form it takes for gov

ritika: you can see the full interview with jim farley on bloomberg technology today.nd the u.k., boris johnson says conservative rebels are now holding -- they say opponents and is owned -- in his own party may delay any attempt to out him. that could change with the release of a government probe which could confirm --. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ >> we have no intention of putting american forces or nato forces in ukraine, but there will be serious economic consequences. jonathan: the president of the united states from new york city with tom keene and lisa abramowicz. bouncing back on a session. down more than 13% year to date and the nasdaq. yields are higher by one basis point. futures are positive. we are higher by 1.41% on the s&p 500. here is the lead paragraph from the team. the latest with germany in these negotiations. the german government has pushed for an exemption of the energy sector if there was a mov

that's on top of the announcement made by ceo of ford jim farley last year investing $11 billion in electricicles, creating 11,000 new jobs. today it right here in western pennsylvania, union pacific railroad announcing the largest purchase of american-made battery electric locomotives in all of history. [applause] and by the way, guess who's supplying those batteries? general motors. folks, i want to tell you it matters. it matters a lot. the company that builds these locomotives is called web tech. they grew out of the old westinghouse company. wab tech is based in pittsburgh. these locomotives will be built at the same plant, status and built at general electric's more than a century ago. not only will these locomotives be running here at home powering our economy, wab tech will be exporting to canada and australia and all around the world to create more good jobs. in the process reducing climate change jobs in western pennsylvania. these are good paying jobs you can raise a family on. all you need is just a little breathing room. a little bit of breathing room. so many people don't have

a heck of a day for ford and it's not surprising when the company intimated about a month ago, jim farleyd our jim cramer yeah, we'll see if we can double a production. it was not a surprise that today they said we will do it. here's the plan when it comes to electric vehicle production specifically around the f-150 lightning. the company will start building and we should see deliveries starting in the first half of this year. the production plan has almost doubled. they plan to build 150,000 annually by 2023 they'll not get to 150,000 right away, but they plan to get there by 2023, and by the way, this week they are saying if you have a reservation for a lightning you can convert that over to an official order speaking of those reservations they now top 200,000 last month and now they're saying if you have one of those orders or reservations you can convert it to an order and in the last year up 170,000 it's all about the evs and here's the reason why. look at the growth of evs that's expected through 2025 and this year it's expected to be 25% of the market by 2025 according to lmc autom

among the employees, maria barros, marc benioff, ford ceo jim farley, siemens ceo barbara hutton and moore meanwhile there's a push for el salvador to drop the currency bitcoin based on financial stability and instability and protection they became the first to adopt the coin as legal tender back in september alongside the u.s. dollar and has added coins to its national balance sheet in recent months. >>> and arc invest ceo cathie wood is weighing in on the recent selloff and unprofitable selloffs, one that's hit her flagship company hard in recent weeks. wood is urging investors to look beyond the recent volatility. >> we do believe that innovation is on sale, and we do believe that it will be really important for investors to get -- to move toward the right side of change given the amount of disruption that we do expect. >> wood adding that it is very important for her investors to keep a five-year time horizon outlook. brian, wood's flagship is down 25%. that's just so far this year in the last few weeks you know, the interesting thing, obviously tessla is one of her big bets we'r

150,000 electric f-150s for the longest time you couldn't give the stock away nobody cared about jim farley's electric pickup truck. now they appreciate an old dog doing new tricks ford currently sells 12 times earnings i think it deserves a much higher valuation i don't want to slight gm. big interview with phil lebeau and mary bower and they're losing the u.s. sales to toyota. there are other stocks that are flying with nothing going on like wells fargo nesting club name. very inexpensive wells broke out for a second day. the stock of jpmorgan got slashed. honeywell saw its stock get downgraded with some comps that made me feel like management is out to lunch totally not true that same analyst suggested ge was a better buy they could do worse. it's not as simple as tech versus non-tech. there are plenty of cheap nontangible tech products. these are easily valued businesses that have a john deere like feel. interest rates won't go straight up even as buying yields are ripping today. the fed may not put through four rate hikes but the bottom line okta versus deere is the best way to understan

ceo jim farley has rebuilt the company. making a giant bet on electric vehicles his goal is to turn a profit on every car he makes believe it or not, that's something his predecessors never seem to put much emphasis on i thought it was as cool as all get out. ford owns a giant stake in rivium are you ready, skee-daddy, for possible repeat of last year's 136% move. what a horse a mustang. that's an ev joke. 7, when the limited broke itself up it unlocked powerful and seemingly powerful choices especially bath and body works even after last year's 132% gain, it had more upside bed, bath & beyond are up. people don't hate bbb. stop paying for a couple of days maybe go there number 8 is an old cramer favorite which is nvidia whenever i talk about nvidia i always like to wear my passes into nvidia's headquarters this is my new pass. this was my old pass this is the one we own for the travel trust ever since the thing traded in the 20s i've constantly heard how it's over valued over valued, over valued the company's strength in g

and we're initiating a dividend, you'll see a multiple expansion >> you don't like the f-150 and jim farleyt i don't like it i like gm better i think gm has got a better mouse trap, and ford is going to do just fine, but i'm going to allocate my capital more toward gm >> all right we'll do final trades next it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪ ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. feel stuck with your finances? ♪ ♪ move your money to

they're trying to ramp up production as quickly as possible we have heard jim farley, the ceo of fordey need to increase production as quickly as possible with the lightning they've already quadrupled it essentially since they first announced what they were going to produce, so they're on a good step for it right now and the market seems to be rewarding them for it. >> finally, what about the legacy auto makers as we learn that toyota out sold gm last year >> that was an impressive feat that toyota outsold gm, it was historic for a nondomestic to reach that spot. even toyota today said that they don't think it is necessarily sustainable and it is not necessarily their goal, but i think they're happy to take the "w" for 2021 >> what would you say we should watch for on gm's stock front? a lot of the movement currently has also been around the success of cruz, and that's sort of a different story. it implies evs but taking them autonomous >> autonomous and evs have kind of gone hand in hand in cyclical nature for the past ten years or so it has been hot button issues that continued to p

that's on top of the announcement made by the ceo of ford, jim farley, last year investing $11 billion000 new jobs. and today right here in western pennsylvania, the union pacific railroad is announcing the largest purchase of american-made battery electric locomotives in all of history. [ applause ] by the way, guess who's supplying those batteries? general motors. folks, i want to tell you, it matters. it matters a lot. the company that will build these locomotives was called wab tech. they grew out of the old westinghouse air brake company. it is based here in pittsburgh and these locomotives will be built up in erie where thomas edison built the general electric a century ago. not only will they power our economy and reduce pollution, they will export them to canada, australia and all around the world creating more good-paying jobs. folks, in the process, reducing climate change, creating jobs here in western pennsylvania. as i said, good-paying jobs you can raise a family on. my dad said, a family needs just a little bit of breathing room. a little bit of breathing room. so many p

. >> because i think jim farley is a different kind of guy. >> take a breather. >> in eye omniverse movie i'm making, ford wins. it isn't like jonas -- >> i was just going to ask think of the ev race as a marathon tesla is in the lead, everyone is at mile two, or ties their shoes, how is that positive for everyone else. >> having the existential crisis a few weeks ago. >> do you think it was klonopin or something needed heavier? >> i don't know, but he's okay he loves ferrari, and clearly loves tesla. do you think tesla is about 21. >> they're like in the keys, you know, i think he stopped it. it's just a sense, when i read him, that he's having the time of his life. no other analyst is having fun he's like, you know -- he has personal, charisma, the fireside chat with quantum scape -- he needs a sidekick. >> ford is up 17% this year, will you lucid is up almost 20%. maybe somebody will take advantage of that. >> we have talked about rivian -- >> when was lucid one of the coolest thing. >> it was. still got to fix this and that, i feel like i need to take another ride >> it's a luxury ev.

global foundries for these large chips that are not the kind of chips, say at ces, the ones that jim farleyt come in, but then you have to buy it, because it's not an expensive stock. i think they can raise the dividend, too, david >> okay. carl >> okay? >> yaeah, okay. >> go get the shingles shot. let me talk to carl. >> it's not that easy being here alone. i can walk over to your "mad money" studio. i'm alone in like 15,000 square feet of space here nobody wants to come near me >> on scott's show at halftime, at least we'll be comfortable. i think we're separated as far as, california versus new york carl, the separation thing is really great, but more importantly is testing the fact is abbott is going from 50 million to 70 million abbott is not raising the prices it's walmart and kroger. >> the deal with the white house expires, so prices are going up. >> carl, the chaos is the cdc is ten days, test twice negative, then shortened it to five days and how are you feeling? >> would you have been happier had they kept ten? >> you couldn't do ten without the test that president biden promised

ford, ford, gm, where mary barra is doing a good job, you're going into far more expensive stocks jim farleydyssey for him. it's an odyssey, and he's now going through, you know, he's strapped to the mass he's going to win. >> he was out there for a long time >> and a lot of trials and tribulations >> yes, he did, a lot. >> and so has farley he'll come through perfectly he 's -- >> which one is tesla? >> a mixed metaphor there. there's no achilles' heel on tesla. he has a good heel remember ajax is another, to get another one in there i think musk is totally for real i liked him very much. he's a great guy. >> really? what did he do that day that he gave you omicron what else did he do to you did he hug you what was it that turned you on to him >> he came in with his did i he talked el wently about space travel my wife turned to me and said this guy is a genius. >> nobody disputes that. i found him engaging, brilliant, exciting, and he's ours, he's america -- well, i consider him american no one in the world has hi vision right now except for maybe jensen huang. things go through his head --

now, look at jim farley.terestingly enough, the one analyst has a sell on ford i've chided him in person, but he has a sell on it. i would rather have been in ford during this period than rivian. >> i wonder at what point jonas has a mea culpa on that underweight? >> yeah. no joe he is so nice, really nice. >> here's the opening bell at the big board, is black spade. at the nasdaq virgin orbit holdings, operators of air launch system that sends satellites to lower orbit, and we will speak to richard branson and hart in about a half hour. >> spacs were very 2021, and a lot of people lost money we also have a fabulous millennium index you'll see a series of companies -- so the analysts that say ohio teachers' pension fun, they have no way to analyze the spacs, so they don't own them i don't know -- that's why you'll see something terrific like simple kind is at $7. even though it's sarah fryer, the one person in technology at goldman and salesforce, was at square, and no-no one cares, which is amazing, because

. >> when we had -- in a stroke of luck, we had jim farley on for our first investment club and he gave hint this could happen. the gaining factor here -- and he does make money on the trucks, is enough batteries. if they had 200,000 batteries and enough inverters, they could make 200,000 trucks. let's not think this is the end of what they can do. it's the beginning there's a big battery shortage in the country when you look at what ford is doing, they've solved the semiconductor crisis for at least the high end they have enough for these they're putting it all forward this where are wegoing to get the batteries? we just don't make enough in this country >> all right is there an answer or is there really going to be a potential problem. by the way, it's not just ford we're seeing increased orders for politics vehicles around the world. and so there's only so much supply >> yeah, battery shortage is real i think that's going to be the gaining factor, i think, and then we're going to hear, carl, that there just aren't any one of the reasons that tesla just seems to continue to roll, they

is ev i come back and read the fourth piece in the new yorker and come back and think about what jim farleying at ford. i keep thinking he has the f-150 and he can't make the electric 150 fast enough. they've been gaining problem is the battery. are there enough batteries and there are not. everything is gated. >> in the caterpillar quarter. they have to ship freight. >> caterpillar >> yes they decided not to -- they decided to have the question mark to keep customers happy what happens the stock. they've decided it was the right thing to do. >> it probably is. longer term you want it. that's a good idea for business. >> your customers are happy. >> he's getting killed. >> all right 2.6% really >> yeah. okay >> remember when bennie half was lefting customers going easy on payments ended up being good in the long-term. unless you're a part of life sciences, you're just not getting any benefit. when people -- if eberle has supply chain problems, you would think it's okay. no every time it comes up, it's a new thing. they have supply chain problems? everybody does kellogg downgraded today. >>

retail end of the business for ford remember they report their q4 results next week we'll hear from jim farleyin their strategy of ramping up ev sales and then when it comes to electric vehicles don't forget after the bell today, guys, we'll hear from tesla. and the most important part of the report today, not the numbers. we know they're probably going to report a sizable profit for the fourth quarter it's what ceo elon musk says during the analyst call of the company's product road map that's what people will be focused on >> all right, phil we will be paying attention where the focus is thanks >>> when we come back, a must-see interview with backrock's bond kick, rick reider investors waiting with baited breath for powell's remarks after today's fed decision rick is going to break down the llnd market, the stock market, te us what he's thinking right now. don't go anywhere. "squawk box" will be right back. >>> we have talked a lot about interest rates in just the first three weeks of 2022. the ten-year yield right now off its recent highs but still up close to 20% of the eryear and contrary